Celsius Clients File Lawsuit To Get Back $22,500,000 in Crypto Assets From Bankrupt Digital Asset Lender

A group of Celsius Network custody wallet customers are suing the bankrupt lending platform to recover more than $22.5 million in funds.

new lawsuit Individual owners of more than 64 Celsius accounts are entitled to a refund because they retain ownership of all crypto assets held in the company’s custody wallets, according to documents filed Wednesday. said.

Account holders claim that the funds cannot be used by Celsius to pay off bankruptcy debt.

“In April 2022, the debtor will [Celsius] Created a self-titled “custody service” where users deposit cryptocurrencies with debtors in “custody wallets” but retain ownership of such assets…

As of June 2022, debtors have frozen all withdrawals of cryptocurrencies from the platform. Since that date, and since the date of the petition, the debtor has not accepted withdrawal from any program, including custody services. user. “

Thursday, Celsius submitted A petition to the same bankruptcy court for authority to allow certain customers to withdraw cryptocurrencies from the custody program. Hearings on the motion are scheduled for Oct. 6.

Celsius Network originally filed for bankruptcy in mid-July. This comes just a few weeks after suspending all customer trading and withdrawals, citing extreme market volatility.

The project’s native token, CEL, briefly dropped from around $0.90 to $0.09. I am currently mounting recovery and changing owner for $1.41 at the time of writing.

Since bankruptcy, the centralized financial company has also been slapped in a class action lawsuit claiming it operates as a Ponzi scheme.

Additionally, the California Department of Financial Protection and Innovation has issued a restraining order and injunction against allegations that Celsius has violated local corporate law.

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